Adtech startup AdOnMo has successfully raised INR 58.21 crore ($6.99 million) in its Series B1 funding round. The company's board passed a special resolution to issue 36 equity shares and 4,156 Compulsorily Convertible Preference Shares (CCPS) at an issue price of INR 1,38,850 each, as per regulatory filings with the RoC.
Key Investors
Ravindranath Kancherla, founder and chairman of Global Hospitals Group, along with his son Kancherla Pruthvinath, infused INR 16.6 crore. Additionally, Qatar Insurance Company and ZNL Growth (Z Nation Lab) invested INR 8 crore and INR 1.80 crore, respectively.
Utilization of Funds
The startup plans to utilize the fresh capital to expand its business operations and meet its working capital requirements.
Company Background
Founded in 2016 by Sandeep Bommireddi and Sravanth Gajula, AdOnMo provides outdoor advertising solutions. The startup enables targeted, real-time advertisements on cloud-connected digital screens.
Previous Funding and Growth
In 2022, foodtech giant Zomato invested INR 112.20 crore (around $15 million) in AdOnMo, acquiring a 19.8% stake. This investment was aimed at leveraging new digital avenues for customer acquisition in Zomato's food ordering and delivery business.
In 2020, AdOnMo raised $3 million in its pre-series funding round from Alibaba’s holding firm Ant Financial-run Bace Capital and other investors like Astarc Ventures and Mumbai Angel Network.
Market Growth
AdOnMo's revenue from operations surged 4X to INR 75 crore in FY23. The company is strategically positioned in India’s rapidly expanding Out-of-Home (OOH) advertising market, which is driven by innovative digital platforms and strategic location-based campaigns. According to a Statista report, ad spending within this sector in India is expected to increase to $589.7 million in 2024, with an average ad spending per capita of $0.41.
